Bank of America’s Cabana Says More Than Three Fed Hikes May Be Needed

Bank of America’s Mark Cabana said the Federal Reserve may still raise interest rates, with inflation above target despite a recent pause in rate adjustments.

Cabana said the central bank may need more than three additional rate increases. The Fed’s target range is 3.75% to 4.00%, and the effective federal-funds rate was 3.88% in early November.

Inflation and employment data, upcoming Federal Open Market Committee meetings and policymakers’ statements will help shape expectations for the Fed’s next moves.